Securitization is the process through which a variety of financial and non-financial assets are packaged into securities for sale to investors.

The cash flows produced by the underlying assets are used to pay for the principal and interest on the securities.

This way, firms can obtain fresh funding to spur development through maximizing their assets.

PLN on Friday held an event attended by its board of directors to introduce the securitization plan and determine what kind of measures needed to be done inside the company to implement the plan, PLN president director Sofyan Basir said on the sidelines of a media gathering in Bogor, West Java, recently.

"[The securitization] is being planned. It's not completed yet," he said, adding that several power plants, such as the Suralaya power plant in Banten, were being prepared to be securitized.

"We are assessing the total amount [of the assets]," he said. "We’re asking for around Rp 5 trillion to Rp 10 trillion worth of assets [to be securitized]."

Another state-owned enterprise set to raise funds through asset securitization is toll road operator PT Jasa Marga, which has prepared two assets that will be divested as part of the process. (bbn)

President calls on Hong Kong businessmen to invest in IndonesiaAntara News, 02/05/2017

Indonesian President Joko Widodo (Jokowi) during his visit to Hong Kong on Monday has called on Hong Kong businessmen to invest in Indonesia.

During a meeting with businessmen in Hong Kong, Jokowi stated that the government has opened more investment chances in various sectors and that the investment door in Indonesia is widely open for them.

He also provided assurance on the governments effort to ensure Indonesia was a good state to invest during his speech at the Hong Kong businessmen meeting in Hotel Conrads Grand Ballroom, Hong Kong.

"Hong Kong is one of the many cities in the world where you could enjoy breakfast along with Superman," Jokowi said at his presentation, which shows Li Ka Shing, a Hong Kong businessman, investor and philanthropist.

Jokowi had earlier met Li Ka Shing, who is called the "Superman" because of his mastery in business, to discuss investment chances in Indonesia.

Li expressed his commitment to the president to increase his investment in Indonesia. He has already invested in Indonesia since more than a decade ago.

"Of course, Superman will always be the first to see a chance," the president stated while explaining Lis actions a decade ago.

The investment chance in Indonesia is of course supported by the governments effort to improve the situation. One of them is regarding reformation."For Indonesia, our current focus is reform," Jokowi noted.

The first reform since he was elected as president was the reduction in gasoline subsidy allocation, which reaches 80 percent, and the fund directed to the other sectors.

"The amount is around US$15 billion each fiscal year, and we allocate them to other sectors such as health, education, and mainly infrastructures," he explained.

Apart from that, the president also stated about the removal of around 3,000 local laws, which hinder investment, and explained the tax amnesty plan as well.

"Thanks to those efforts, this year we have increased our rank in World Banks Investment index to 91st from 106 last year," he remarked, adding that the new target was to rise to the top 40.

Infrastructure development in Indonesia now connects more areas and increases chances in tourism sector."We have launched a program called Ten New Bali in Bali, our famous tourist island with the better infrastructure, similar to Raja Ampat in Papua, Mandalika in Lombok, and Komodo Island," Jokowi revealed.

"Anyone can buy properties there before Li Ka Shing buys them all and increases the price," he added.

Hong Kong is well known for its power in real estate and lifestyle development sectors, which makes it suitable for tourism development in Indonesia.

Jokowi himself has predicted that in the near future, Indonesia that would receive lots of investment in hotels, resorts, tourism districts, and several attractions.

"I also see a big chance for Hong Kong monetary industry. I believe the infrastructure funds in Asia would be the biggest stock market chance for some decades," Jokowi pointed out.

He ensured that he would do his part to improve various aspects to make Indonesia a good place to invest.

An Indonesian business delegation composed of small and medium enterprises (SMEs) and big-business chiefs is in Manila to enhance ties and further trade and economic exchanges with the Philippines.

The 40-member delegation, led by the chairman of the Indonesian Chamber of Commerce and Industy (Kadin), Rosan Roeslani, is in Manila from Wednesday to Sunday to conduct a series of business-to-business meetings with their Philippine counterparts, according to information from the Philippine Department of Trade and Industry (DTI).

The business visit was also one of the side events during the state visit to the Philippines of Indonesian President Joko Widodo on April 28, the Philippine embassy in Jakarta said in a press statement.

To welcome the business delegation, a Business Networking Forum was held on April 26 at the Indonesian Embassy to facilitate networking and forge a closer and more vibrant trade and economic relations between the Philippines and Indonesia.

Indonesian Ambassador to the Philippines Johny Lumintang noted in his welcome remarks the improving trade relations between the Philippines and Indonesia with trade transactions amounting to US$ 3.56 billion in 2015.

He also reported that Indonesia is now the 9th trading partner of the Philippines with a percentage share of 3.7% in the total trade of the Philippines with the world.

During the forum, the DTI conducted a briefing on Doing Business in the Philippines and presented trade and investment opportunities in the country.

One of the highlights of the presentation is the potential public private partnership projects that can spur massive development in the country.

A special focus on Mindanao was also presented, in particular initiatives on enhancing connectivity in the region.

The Indonesian SME delegation attended the ASEAN Creative Cities Forum and Exhibition, an event aimed at promoting a creative and innovative ASEAN on Thursday.

Distinguished speakers from Indonesia such as Mayor Achmad Alf Arslan Djunaid of Pekalongan participated in a panel discussion on Crafts and Folk Arts.

Pekalongan or the "Batik City" of Indonesia is one of the members of the UNESCO Creative Cities Network, an organization that promotes cooperation with and among cities that have identified creativity as a strategic sector for urban development.

The delegation met with top business executives at the sidelines of the Prosperity for All Summit organized by the ASEAN Business Advisory Council, on Friday.

At least eight memorandums of understanding were signed by the Indonesian conglomerates with their counterparts.

The agreements would pave the way for the expansion of Indonesian businesses in the Philippines, investments in water delivery, sewerage and sanitation services, cooperation agreements in property development, and the promotion and distribution of Indonesian products to the Philippines and vice versa.

The business delegation is also scheduled to travel to Davao City to participate in the launching of the Davao/GeneralSantos-Bitung ASEAN RoRo Shipping Service on Sunday.

The maiden voyage of the shipping service will be launched by President Rodrigo Duterte and Indonesian President Joko Widodo.

Aside from the business delegation already in Manila, a large contigent from Bitung and Manado will also be attending the DGB RoRo launch.

A business-to-business meeting between Indonesian and Mindanaoan companies is scheduled to be conducted after the launching ceremonies to encourage more entrepreneurs to take advantage of the opportunities being offered by the new shipping service.

The meeting between Jokowi with Li Ka-Shing was held on the sidelines of the President’s official work visit schedule in Hong Kong.

As one of the largest port operator companies in the world, Minister Retno said CK Hutchison Holdings’ investment has amounted to US$10 billion.

The company owns 51 percent or the majority of the share in Hutchison Port Indonesia, which is the port operator of Tanjung Priok, while 49 percent of the rest are owned by state-owned port operator PT Pelindo II.

Hutchison’s 2019 contract has been extended for another 20-year and this time, the state-owned port operator will acquire the share majority, which is 51 percent.

Retno said that CK Hutchison views Indonesia has a huge potential. Therefore, the company committed to adding its investment value in Indonesia.

Kadin deputy chairman for international relationship Shinta Widjaja Kamdani said that Indonesian Kadin also signed an MoU with the Philippines Chamber of Commerce and Industry (PCCI) to strengthen ties and exchange information on trade barriers between the two countries.

Kadin also visited Alfamart’s convenient store that was recently opened in Manila. According to Shinta, Kadin fully supports Indonesian business expansion in the ASEAN market. This year, Alfamart has set a target to open up to 400 stores in Philippine.

Another Kadin’s agenda during the visit to Philippine was to support the plan to open a Santos-Bitung vessel route, which is expected to improve trades between Indonesia and Philippine. Rosan said that the route is one of the priorities in the ASEAN Roro Network Project.

With such an access to Philippine, Rosan claimed that commodities and products from Eastern Indonesia will reach Philippine via Bitung Port.

“In addition, the shipping cost will be cheaper, and the shipping time will be shorter. Business owners of the two countries have started listing commodities and products to be exported and imported,” Rosan said.

Philippine is the 11th largest trade partner for Indonesia, with a total trade value of US$3.51 billion in 2015. Last year, the figure increased to US$4.9 billion with an average growth of 6.3 percent over the last five years.

“CK Hutchison Holdings Limited is one of the largest companies listed in the Hong Kong Stock Exchange,” Foreign Minister Retno Marsudi said in a press release on Monday, May 1, 2017.CK Hutchison Holdings Limited is one of the largest container terminal operators in the world with a total investment of US$10 billion.

Retno explained that the company views Indonesia as a country with a huge potential. Therefore, Li Ka-Shing expressed his commitment to increasing the company’s investment in Indonesia.“A commitment to increasing investment in Indonesia has been made,” Retno added.

During the meeting, President Jokowi also elaborated a number Indonesian government plans to improve the economic growth.

“Indonesia’s economic reform was one of the topics raised by President Jokowi,” Retno said. “President Jokowi also explained Indonesia’s infrastructure development plans.”

Palangkaraya hopes to be chosen as Indonesia's new capitalThe Jakarta Post, 02/05/2017

The Central Kalimantan administration said it was hopeful that President Joko "Jokowi" Widodo would move the nation's capital to Palangkaraya, saying such a move would fulfill the "dream of Indonesia's founding fathers."

The province's capital was reportedly among cities being studied in regard to their readiness to become Indonesia's new capital.

Central Kalimantan Governor Sugianto Sabran, an Indonesian Democratic Party of Struggle (PDI-P) politician, said he hoped Palangkaraya was named the country's new capital during Jokowi's presidency, claiming the province had the "potential to be on par with other more developed provinces" in Indonesia.

"We just pray the plan materializes [...] Central Kalimantan is in the center of Indonesia and less prone to earthquakes," Sugianto said at his official residence in Palangkaraya.

The government included Palangkaraya on the list because Indonesia's first president, Sukarno, had planned to move the capital city there.

National Development Planning Minister Bambang Brodjonegoro told Antara earlier that the government had expected a final decision on an alternative capital city "within this year." (ary)

tate –owned ship builder PAL Indonesia sent on Tuesday a second warship from Surabaya to Manila that had been ordered by the Philippine government. The first ship was sent in May last year.

PAL Indonesia spokesman Bayu Witjaksono said the ship was initially to depart in mid-April.Bayu, however, said the delivery of the warship was ahead of its deadline in June.

The ship is equipped with a sophisticated weaponry system and helipads for three helicopters and a hangar.It is also equipped with landing craft utility and can transport various war equipment, such as military trucks and amphibious assault vehicles.

The second ship ordered by the Philippine government can also function as a hospital, Bayu added as reported by kompas.com.

The warship is named Davao Del Sur, the home province of Philippine President Rodrigo Duterte, while the first ship -- Strategic Sealift Vessel (SSV) Davao Del Sur-602 – was named Tarlac, the home province of former Philippine president Benigno Simeon Aquino. (bbn)

The Energy and Mineral Resources Ministry and Denmark’s Development Cooperation Ministry launched on Tuesday a map pinpointing the wind power potential for electrification in Indonesia.

Denmark Development Cooperation Minister Ulla Tørnæs said this was part of a six-month cooperative engagement between the two governments, during which they exchanged their experiences in developing renewable energy sources for electrification.

“Today, we are launching a new wind map that shows the vast potential for utilizing wind in Indonesia,” Tørnæs said in her opening speech at the Energy and Mineral Resources Ministry in Central Jakarta on Tuesday.

“A number of visits to Denmark [by Indonesian officials] over the past six months has deepened the discussion and insight into waste-to-energy solutions, the use of biomass and how to accommodate fluctuating markets.”

The map displays the hot spots for wind power potential in Indonesia. It is expected to help the government and investors decide the best locations to develop wind turbines.

The map was also launched alongside a book titled Integration of Wind Energy in Power Systems, which will serve as a guide for policymaking and the integration of electricity into state-owned electricity firm PLN’s existing system. The book was written based on Denmark’s experiences in wind power development. (bbn)